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tv   Bloomberg Markets Americas  Bloomberg  October 16, 2017 2:00pm-3:30pm EDT

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look above very closely. well, he is a good man. i have not spoken to him. but i will speak to him and make that determination. to do whatit is 1% we will do, i will make a change. one second, yes. we are going to be doing that next week. you know that is a big step. by the way, people have no understanding of what you just said. that is a very, very big statement. important step. together that step, a lot of work has to be done. it is time consuming work. we will be doing it next week. ok? did you have a chance during your lunch to discuss the comments steve bannon made? will you make of the comments?
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the goal here is to win elections in november. 2012, we010 and nominated several candidates. christine o'donnell, cheryl murdoch, theyd are not in the senate. the reason for that is they were not able to appeal to a broader electorate in the general election. michael as the leader of the republican party in the senate is to keep us in the majority. what you do that is not complicated. to nominate people actually went because winners make policy and losers go home. we changed the business model in 2014. we nominated people who could win everywhere and took the majority and took the majority in the senate. we had one skirmish in 2016. we kept of the majority. our approach will be to support our incumbents and in open
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seats, to seek to help nominate people who can actually win in november. that is the way you keep a governing majority. >> earlier today, you talked about drug and insurance companies. what specifically would you like to see from both of those companies? pres. trump: the insurance companies have made an absolute fortune with obamacare. as you know what i did with the cuts at the end, you are about hundreds of millions of dollars a month going into the pockets of insurance companies. i am very happy with what i did. because of that, people are talking now. democrats are talking to the republicans for short-term, taking care of health care. so that people can have good
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health care without bacon spikes. you would have had massive spikes. tory year, the spikes obamacare were ridiculous. a priority of mine, and you know this is coming up, will be the cost of prescription drugs. way downet the costs and the drug companies -- the insurance companies are one case. in regard to both, u.s. drug companies. they contributed massive amounts of money to political people. i don't know, mitch, maybe even to you. i can tell you, they contributed massive amounts of money it i have not interested -- amounts of money. i'm not interested in their money. i do not need their money. you have prescription drugs. you had to england or various places. canada, many countries. the same exact bill from the same company, sandbox, same everything is a tiny fraction of what it costs in the united states.
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we will get prescription drug prices way down because the world is taking advantage of it. -- of us. that is going to be very important. >> mr. president! >> on health care, there are about 6 million people who get help with obamacare. about 70% from one study. nothing you have cut off these payments, are you going to enter those people still get health care coverage? pres. trump: that's what we're looking to do. we want to get it down so that people can get affordable health care. you look at some states. in alaska, over 200 percent up. in other states, 50% or 70% up. those are some of the states that are doing better. obamacare is a mess that is destroying lives. want to get it in those states, the states that is it will end, but also states that i didn't win. i want to get health care that is much more affordable and much better health care.
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that is what we are doing. me ask you about tax reform. pres. trump: go ahead. >> you said the other day there are adjustments being made. gary cohn said today there would be some things that are negotiable. what exactly in your eyes are negotiable? the said the top priority is tax reduction, you did not say tax reform. we are doing minor adjustments. we want to make sure the middle class is the biggest beneficiary of the tax cuts and tax reform and that is i am sure what management also. people get it confused. we are getting massive tax cuts. we are also doing simplification and reform. literally, if we can do it on one page. wo some cases it may be t pages. we're bringing the categories down from if you include zero, because there are zero, we are bringing it from eight to four.
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simplification just that alone. we are doing massive cuts. i will say this. wherever i have been, this has been so popular with the few. -- the people. now we have to get a couple additional people to raise their hands. the mcconnell: i agree with president. it is about both reduction and reform. thiss been 30 years since kind of effort was undertaken successfully. we will succeed this time. the bills, the details of them, will be written by the ways and means of the finance committee's after we approve the budget and obviously the budget opens the path to tax reform. it is about both. it vocals reform and resurrection. anythingven't we heard from you -- [inaudible] with you have to say about that? pres. trump: i have written them
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personal letters and they are going out tonight. i will at some point during the the parentsme call and families, because i have done that traditionally. i felt very badly about that. it is the toughest calls i have where thise calls happens. soldiers are killed. it is a very difficult thing. he gets to a point where you -- your five of them meet four or five in one day. so for that is the toughest day. if you look at president obama or other presidents, a lot of them did not make calls. i like to make calls when i think it is appropriate, when i am able to do it. they made the ultimate sacrifice. generally, i would say i would like to call. i am going to be calling them. i want a little time to pass. i have, as you know since i have
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been president, i have. in addition, i actually wrote letters individually to the soldiers we are talking about and they will be going out either today or tomorrow. you, mr. president. >> general kelly said you believe cuba could stop the attacks against americans. do you believe them? pres. trump: i do believe cuba is responsible. i do believe that. it is a very unusual attack that i do believe cuba is responsible -- i do believe cuba is responsible. roy in alabama says he --should be illegal and muslims should be barred from serving in the u.s. congress. what makes you comfortable with someone with those believes serving in the u.s. senate? pres. trump: i will be meeting with roy sometime next week and we will talk to him about a lot
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of different things. i will be meeting with him. he ran a very strong race. the people of alabama, who i like very much and they like me and much, but they like roy we'll be talking to him. i can report to you then. >> mr. president! >> this is a question for you and leader mcconnell following up on your comments on judges. one of the issues is what the judiciary committees -- [inaudible] what your position is, mr. president, and what your position is, leader mcconnell. sen. mcconnell: i can give you my position. the blue slip for those of you are not familiar with it is a --tom to determined determined by the chairman of the judiciary committee. senator rossman can give you his view of how he views it. i will give you my view. my view is a blue slip on a circuit judge is something and
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notification of how you are going to vote. would have otherwise left us in the following position at the beginning of this sentence. 48 -- senate. 48 senators would happen been able to blackball 52% of the nominees. that is not a tenable place to land in a senate that now deals with judges with a simple majority. thatn personal view is blue slip on a circuit judge should simply be a notification of how you intent to vote. we could top loose lips, but my attitude is i just want really capable people going to the court ans. >> in 2012, you treated about bs.ident obama's agenda is
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you said he can never take responsibility. said, i'm not going to blame myself. thanis different then, now. pres. trump: three of nominations pending right now. if you look at this, the number that he had approved was 65% and 70%. we have 39%. they're are holding up every single nomination. they are holding up every single nomination. they are obstructing and doing -- i am telling you, they are not good politicians but they're very good at obstruction. they are holding up every single nomination and i will tell you, peter, it is not right. it is really not right. to bring it right out to the end of last minute. but they are doing is unfair. you look at bush, you look at obama, you look at clinton, and you look at bush originally.
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you have 389 versus 182. these are approvals. you look at clinton, 357 versus 182. 182.dent, 364 versus these are nominations approved and what they're doing to us -- we have unbelievable people in there waiting to be approved. they have been waiting to be approved for a long time. i believe mitch will push them very hard. he will do that and wants to do that. you want to get the judicial nominations through and he wants to get them through fast. go ahead. >> can i just follow on the? you seem to have a budding spirit of cooperation with the senate minority leader and the house minority leader when it came to the budget and the idea daca.everya fix for proposal you have had since then they have critically rejected. so where is this relationship?
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pres. trump: i hope to have a relationship. if we don't, we don't. we have races coming up as you know in a year from now. i think we will probably do very well. i can say this, if we get taxes approved we will do unbelievably well. many of the senators are running in state that i have one by massive amounts. over 20%, sometimes 30%. i guess in one or two cases, over 40% over the democrats. i would like to give you the answer in about seven years from now. is that ok? meaning one plus seven. john, i hope to be able to because i like the concept of bipartisan. right now, they're doing nothing but obstructing. really, if you think about it, they are against major tax cuts that will make our country stronger and more competitive. that is a hard thing to win an election on. i think some democrats will be voting for us when it comes to the tax cuts.
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>> economic development -- pres. trump: i will be proposing an economic development bill in the not too distant future. health care, but somewhere in between or shortly thereafter. economic developing an development build opus so far ahead of other countries you will not even believe it. thank you, mr. president. last week your administration made two major announcements on rolling back the rand deal and getting rid of the cautionary reductions as part of obamacare. been of criticism has leveled at your administration, saying all you are doing -- pres. trump: and a lot of praise. >> fair enough, sir. a lot of what you are doing is labeling back everything your predecessor accomplished. is there a single policy of your predecessor that you
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specifically do not want to touch, sir? pres. trump: we very opposite in terms of incentives and incentives for jobs and other things. if you look at what has highned, we just did a new in the stock market. we picked up $5.2 trillion in stock market value. we have the lowest unemployment rate and i believe almost 17 years. we're doing well. we're going to be doing immigration work and that is going to be outstanding, and we will have people coming into our a merithopefully on system, not just coming in randomly. but they will be coming in based on a merit system where they can help us. i have companies moving into this country. you saw happens with automobile industry last week with five major plants. we have companies bring back into this country for the first time in anybody's memory. we are going to be fairly soon at the point where we will need workers. our country is going to do so
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well, but the tax cuts will be a major part of it. >> is there anything you would want to keep in place of? many, iump: not too must say. it is the opposite side of the term. >> earlier you said president obama never called the fallen soldiers. how can you make that claim? pres. trump: i never did. i was told that. writeof presidents letters. i do a combination of ball. sometimes it is a very difficult thing to do, but i do a combination of both. president obama i think probably did sometimes and maybe sometimes he didn't. i don't know. that is what i was told. all i can do is ask my generals. other presidents did not call. they wrote letters and some did not do anything. but i like the combination. i like, when i can, the
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combination of a call and also a letter. president. if it would help special counsel robert mueller get to the end of the russian investigation -- pres. trump: what i would like to see it end. the whole russian thing was an excuse. excuse me. the whole russian thing was an excuse for the democrats losing the election. today hillary clinton nigel farage. on came out of nowhere. the was an excuse for democrats losing an election that friendly they have a big advantage in the electoral college. they should always be able to win in the electoral college they have been unable to. there has been no collusion. it is been -- it has been stated that they have to collusion. they need to get to the end because the american public is sick of it. >> to you believe your comments in any way affect the ability to receive a fair trial and can you
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respond -- pres. trump: i cannot comment because i guess he is doing something today as we know and is also -- they are setting up sentencing. i will not comment on him. i think people have heard my comments in the past. go ahead. >> would you set a deadline for daca recipients? pres. trump: they should be able to do something, but we need very strong border security and we do want the wall. go ahead. i spoke to governor brown. we have fema there. james d. witt gave us an a plus. military there. we have first responders there. it is a tragic situation, but we
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are working very closely with the representatives from california and we're doing a good job. >> with the allegations of harvey weinstein -- [inaudible] pres. trump: global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. -- its. trump: all i can say is is fake news. it is made up stuff but that happens in the world of politics. with the wall, [inaudible] our country needs a wall. mexico, you see what is happening there. you see what happened yesterday wi one of their big political leaderst. mexico is not doing well with
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things we do not have interest in. drugs are pouring into our work that we need a wall to really stop it. we need a little in this country. you know it, i know it, everybody knows it we have to have also that will be part of it. rico situation is so -- because you know -- oh, i think it will. that is according to the clinton administration. quarterly. because it is an island but it is tough because it was in very poor shape because -- before the hurricanes ever hit. shape and was bad not working. was in bankruptcy. of $9 billion. on top of that, the hurricane co youm have to build a whole new electrical plante. system. generators has more than any place of the world.
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there are generators all over the place. the fact is their electrical system was in horrible shape before an even worse shape after. we are working right now, as you know, relief funds were just approved. that ncludes taxes, includes florida, puerto rico, the u.s. virgin islands, etc.. etc.as in real ba -- it was in really bad shape before. we have delivered water. then you have to have water on theof island. we have massive amounts of water food but they have to distribute the food to the people on the island. we have military distributing food, something they shouldn't have to be doing. if you look at the governor, who is a good man, by the way, if you look at the governor he has
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said we have done an outstanding job. puerto rico is a tough one. go ahead. >> can you speak about your support for the 20-week abortion ban bill? how important is this eu and what are you doing -- to you and what are you doing to make sure this gets through? sen. mcconnell: question about well0-week -- yeah,w it is supported by virtually all of my members and we expect a have a vote on it at some point. there are those who believe this would be the worst time to do that. how do you justify what you are trying to do in south korea? pres. trump: i will be going to help korea, japan, the summit.
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i may be going to the philippines also. we have been invited to the philippines and i may be going to the philippines. i look forward to all of them. we have not set the details as of this moment. we'll take a look at that. i did not hear in terms of provoking. an earlier question, you -- theed with discussion special counsel. are you considering firing robert mueller? night weres last flashing in northern iraq. are you worried about the region while u.s. forces are still there? pres. trump: we do not like the fact that there are clashing. we are not taking sides but we do not like the fact that they are clashing we have had for many years -- clashing. we have had for many years a good relationship with the kurds. we should never happen in iraq
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in the first place but we are not taking sides in that battle. hillary clinton said she does -- players layers kneeling in the nfl was about disrespecting the flag. oh, i hope hillary runs. hillary, please run again. with whetherh you or not they are disrespecting the flag? pres. trump: there is plenty of nees and lots of other things -- that is why she lost the election, that is the reason why she lost the election. when you go down and take a knee or any other way, you are sitting essentially for our great national anthem. you are disrespecting our flag and you are disrespecting our country. the nfl should have suspended
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some of these players for one game, not fire them, suspended them for one game. again,n if they did it or two games or three games and then the season. you would not people disrespecting our country right now. if hillary clinton actually make the statement that sitting down during our national anthem is not disrespectful, i fully understand why she did not win. there are a lot of reasons why she did not win, including that she is not good at what she does. that is something i just heard about. i think her statement in itself is very disrespectful to our country. thank you very much.
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it is very does rebuttable to our country when they take a knee during our national anthem. r it.hera it is very disrespectful to our country when they take a knee during our national anthem. number two, the people of our country are very angry at the nfl. you saw empty seats for you have never seen them before. a lot of people are very angry. it is highly disrespect libation and do it. thank you very much, everybody. thank you. lia: president donald trump and mitch mcconnell facing a bearish of questions in the rose garden. is addressingline the relationship that the gentlemen have here. donald trump saying we are in the best shape we have been in. before.loser than ever
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he has been spending a lot of time with mitch mcconnell and they are working together. they're trying to push that criticism of their relationship. as far as taxes, they said they are working on it. they talk about tax cuts. donald trump used the word tax reform. some debate over the timing of this and whether they will be able to do this by year end. donald trump said he hopes. this was a wide-ranging news conference. we are talking about a 45 minute long news conference that touched on many issues. the president's asian trip. puerto rico, the nfl, the national anthem, health care, bringing prescription costs down. when we want to finish is on tax reform -- the one we want to finish on it is tax reform. they want to measure the middle class is a beneficiary. as we talk about the timeline, congress and the white house are facing crunch time.
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lawmakers are looking at a crowded legislative calendar. there are limited workdays remaining to tackle a number of key issues, including the budget, iran's nuclear deal, and tax reform. joining us this peter roskam of illinois. future -- he serves as chairman for the subcommittee on tax policy. as you heard from the senate majority leader and the president, the timetable here is still for tax reform to get done this year. my question to you as chairman means thate subcommittee, how much of this bill has already been written? are we talking 10%, 40%, 70%? >> it is hard to give you a straight answer in terms of a percentage but i can give you a frame of reference. what we're waiting for right now -- scarlet: please, go ahead. >> what we are waiting for rate now is for the budget number to
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be reconciled. once there is a sense of clarity about the amount of money that can be further over the 10-year budget window, you will the te taxiting committee wri policy to that number. this has to be paid for over a look at it as if we were taking out a loan, what is our credit limit, and we will write policy toward that number. number of been any these proposals that have been well discussed and mitigated within the public. the real tax-writing and market that will come -- mark up that --l come through that julia: there's a blues i will add to the deficit. where do you stand on this? should this be deficit neutral? rep. roskam: what we propose is trillion.$1.5
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the way i described it is accurate. debt is a tool that we want to use only to buy something that is appreciating. we've been taking on this debt and the changes in taxable as essentially priming a pump to make sure we have an economy that is growing and expanding. folks who have looked at the proposal have said if we move forward on the framework, you will move from 2% to 3% of economic growth. if that worth taking on $1.5 trillion within 10 years? sure it is. it has to be paid back but i think we have that room to work with to make sure it is paid back. i come from a state that is sensitive to this. illinois is a whistle past the graveyard. it has not ended well. scarlet: that is a really good point. does this mean that deficits to not matter in this particular tax reform effort? rep. roskam: they do matter. what i think we are trying to do is find a common ground. there are some folks that say
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any tax cut is a great thing and do not worry about its impact on the debt. there is a people that they any amount of debt is completely intolerable. what we're trying to do is say -- there are people saying that any amount of debt is intolerable. what we're trying to say is you get a robust, dynamic economy that is moving again and we get these rates low and middle income tax relief. let's chase that and let us pursue that. we have to shut some of these arguments on both ends -- we some of the arguments on both ends of the debate and find common ground. there is an urgency to this debate. you get is based on the sense of the urgency. it is palpable. all the reporters covering the -- we have to publish this goal. julia: as far as state and local
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tax reductions are concerned, will you fight to keep them? rep. roskam: there is no way to approach fundamental tax reform and not make fundamental changes to the tax code. the notion that things do not isnge means it self-defeating at the beginning. i represent this constituency that pays high property and income taxes comparatively. i am making sure the tax reform debate simply does not mean a redistribution of the tax liability from one end of the country to my end of the country. new jersey, new york, california are all high-tax jurisdictions. we're looking for a soft landing on this. my appeal to other high-tax state representatives has been to say the value it the total tax reform package -- evaluate the total tax reform package instrumentality. let's go to our constituents, and i think the people i
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represent say they are interested in tax relief. they are not concerned about how we get there but they want to see that tax relief on a net-net basis. i think the effort will be evaluated on that basis and people type in on a tax calculator and either the taxes will go down in their happy are the taxes will go up, in which case they will not be happy and it will not pass. i think it is straightforward. julia: if you will not fight to keep this, we promise to compensate those that are hurt by the loss of those seductions if indeed they are taken away? rep. roskam: the point that i just made is if the people who are impacted by all of these things are going to be beneficiaries of doubling the standard deduction, having the first tax rate b 0%. 0%.ng -- be getting rid of the alternative minimum tax. all of these things will mean that the constituents that i represent get tax relief.
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i think that will be the bottom line for folks across the spectrum. julia: thank you so much for joining us and for the delay. bearing with the us follow president spoke. breaking news on the new potential fed chair. there is a favorable impression on president donald trump after an hour-long interview at the white house on wednesday. this according to several people familiar with the matter. alex wayne joins us now. alex, give us more details on this great clearly, it seems a good meeting between the president and john taylor. is he now talk to take over the job? alex: we are not calling him the front runner, but we were told the president gush about him after the interview. kevin warsh, meanwhile, who is , is saidhe shortlist to be slipping and stature in the white house. we're definitely not calling him
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the front runner either. scarlet: my question to you on john taylor is he is the author of the man behind the taylor world. he argues that interest rates should be higher. the president made clear he is a low rates. -- where does that leave john taylor? taylor said interesting things lately where he backed away from some of his more strict principles or positions on monetary policy. he said last week at a conference that the fed should not be constrained by rules. find ay be able to little common ground on policy. you're right. as a matter of looking at the two men, they wouldn't seem to agree. john taylor is the author of this rule, it is a function on the bloomberg terminal.
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that would dictate higher interest rates relative to where we are today. restedesident is not inte in higher interest rates. i am not sure how they bridged that chasm or how it is much of a concern for president trump, even if a hypothetical fed chair john taylor started to raise rates, he probably wouldn't do a lot faster than janet yellen is already doing it. i'm not so sure he is that concerned about it. i think he is more concerned about whether he likes and trust ts person he will appoint. formallyrough interviewed janet yellen this week as we draw closer to making a decision. what can she do to convince met this stage to allow her to stay in the job or that she wanted? -- she want it? if i were her i would point the president of the recent stock market numbers.
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she is accomplishing the two things the that is supposed to be concerned about. low unemployment and low inflation. there are some economists that oo low.nflation is t that is probably the only fault against janet yellen. and the president's -- in the president's mines, her problem is probably that she was appointed by barack obama. let us shift gears and turned airline frequent this from australia -- airlines. adding its dreamliner's to fleet. it will be used to direct light from london to perth. joining us from seattle is alan qantas airlines. thank you for joining us. you called this a watershed
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moment for the airline because of these new, direct links that you have been able to offer to cities in europe and the united states. talk about the ones you are launching and those you are considering. >> these aircraft are a real game changer because it gives us the range we have been after. we started find the kangaroo route in 1946. back then, it took three to four days. the reason why was called the kangaroo route, it had so many hops. with this aircraft, we can fly directly from perth into london. it is the first time australia and england have been connected, the only two consonants on the globe that have not been connected. there also routes where looking at the give us further range in , to add to oures
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operation in dallas, new york, l.a., san francisco, vancouver. it is really exciting for the airline. really great that we are seeing these super long-haul operations being able to be implemented. of the: you mentioned united states. there is anecdotal evidence that americans are more weary to travel to europe because of terrorist attacks. i am wondering if you have seen australia pick up this business from u.s. tourists. alan: we have seen really strong growth from the united states into australia. we have a very large network and we partner with american airlines. we are cochairing to arranging destinations to the u.s. has seen tourism builds from north america, europe, china in particular. twoave seen over the last years a 13% annual growth rate from chinese tourists. there is significant growth in all sectors of the tourism
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market. julia: this could have been lped when your proposal would have been accepted, which allowed the joint planning of groups from the united states, new zealand and australia. you said it was refused under the trump administration. he still planning to file it? -- are you still planning to file it? alan: yes we are. it was rejected by the department of transportation the obama administration. i was actually an washington, d.c. this week with the head of american airlines to talk about the department and the secretary about filing and our intention is that within the next few by the end oft november, we will resubmit a filing and asked for the partnership to be approved. you're looking to do
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and the next couple of weeks. can you tell us a little about what will change this time in the refiling? alan: we believe this i will make a good case of explaining the consumer benefits. clearly, what has happened since the arrangement was not approved is that we have seen the consumers not getting the benefits of the partnership. airlines scale factor services. is being detrimental to the consumers. we have a very strong case on the consumer benefits. we think we need to make that clear to the regulator. julia: your confidence of a green light this time around? alan: you can ever taken for granted, but we believe we have a strong case we were a bit -- strong case. we were a bit surprised that
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this was rejected because the department of transportation we approved this and set in the past there was consumer benefit. all of our content -- competitors have similar partnerships that had previously been approved. we think the president has been there. there is a great case for consumer benefits and we need to make that case clear. julia: great to chat with you. alan joyce. coming up, the white house top economist has a look. wetalk about the trump for taxration's plan reform. this is bloomberg. ♪
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julia: this is bloomberg
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markets. i am julia chatterly. scarlet: i am scarlet fu. the trump administration is selling the tax reform plan and a $4000 which bump to middle-class household. with the framework still light on details, critics say the republican tax plan does not have enough ascetics to ofermine precise outcomes income levels. david gura joins us with more. d: let us start with timing. how much does it matter how quickly a company would appreciate cash from overseas? >> i think there are a bunch of different models we go into in our study. -- problem is that wages they located profits overseas. but the president's tax plan would do is to encourage more income in the u.s..
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both of those channels lead to higher wages. i expect we would see a big movement in the $4000 number we have been citing summer in range of three to five years. david: what burden of the corporate rate to workers b ear? what is your number? >> the calculations in the report we put out today do not have to take a stand on what burden they bear. estimateone paper that this simultaneously with wage growth and that versus 58% of by workers.s our $4000 is very conservative. david: with the critics who say most companies do not pay 35%. they do not need this incentive to pay more are hire more
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workers. what is your response to this criticism? a niceright now, we have corporate tax on earth and we do not get much revenue. the reason is because it is over and ireland helping drive up wages over there. the fact is countries around the world have reduced rates over and over again over the last 20 years. we economists have lots of data we can study. if you look at it, the countries that lower the corporate rates and the saying higher wage growth. it is a very reliable pattern. there were these imf meetings this weekend i was having breakfast on saturday with a bunch of finance ministers from around the world. we're talking about what we're doing and i saw a lot of head nodding. andid that we saw the wages that makes complete sense. this is not a controversial thing is that maybe here in the u.s. with our democrats. david: imagine a couple decades looking back to all the work you
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have contributed. this will be front and center. will you acknowledge that there is disagreement here and where do you see the common ground with those like lauren summers who called it an absurdity? kevi sure there is room for common ground. nif i see a paper tomorrow that tells me the effect is the exact opposite of what you said, then i will change what i think. the fact is there have been some harsh criticisms of personal criticisms of what we have done, but i have not seen a lot of substance. if i see substance, i will respond with substance. david: let me ask you how you once and twice companies to do with this money they bring back, what you would like them to do. you can have companies spend on automations where they can return it to shareholders. within the framework we have seen, within what the congress is working on, how do you incentivize companies to do what you want them to do? evin: there is a reliable
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pattern by we cut the corporate rate, which is go up in that country. they go up for blue-collar workers, but there have been other papers that look at the wage response to run the income distribution and found the rate of change -- for the growth rate of where you just is about -- of wages is about the same throughout the distribution. but does mean we know 100% with certainty what will happen next year the minute we do this because this is an inexact science. there is an overwhelming amount of evidence. if you do not believe the evidence, you have to give me a story for why every country around the world have been cutting its rate and doing it ,gain and again, even greece which has a lower rate than ours and they have a government run by the coalition of radical. france is lowering the corporate
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even though it is already lower than ours. way torstands the best help workers is to cut the rate. if you disagree, you need to give me a story and it needs to be better than throwing involve my way. david: i heard the tax policy center and the tax policy forum. there only were critical of the work the first group did modeling all of this out early after the framework was released. how should we say what you are doing is different from that? is there a bit of doublespeak there? are you doing exactly what you criticized of them for doing? kevin: 100% not. that is a good question. side, this haste all the details we need to match the proposals to the existing literature. we have not put out anything like a complete score of the plan. we have not estimated the gdp growth affects because in order
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to do that, we need all the details. as soon as we get a complete planned, we will do that well. david: thank you for your flexibility. julia: thank you so much. women may be graduating from loss cool than ever before, but newly minted jds are not gaining ground in big law firms. women make up more than half the law school graduate yet are fewer than 30 of -- 35% in law forms. spoke withe talk, i a law firm partner in her experiences getting to the top and why it is so dismal for women in law. it is an interesting to assist it because it has been the case since i was in law school five years ago. law school classes were around 50-50. the number of women going into aspec has remained
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stable over the past two decades. part of that is what we perceive possibilities in law forms. that may not be what women perceive the fertile ground. get out of the big law firm environment and go in-house, where it is perceived as a little bit more friendly. scarlet: friendly and what way? toin terms of being able economy scheduling and worklife balance issues. for most women coming out of law school, there is sort of the natural fact that about the time you would be getting married or having children are playing for family coincides with the prime years of associate time at a law
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when and that is associates are proving their chops and moving forward and looking for promotions and trying to move into that partnership role. that is just a fact. i think law firms need to adjust that fact head on and be prepared for the. itprepare for that and how coincides with women and their careers and families. scarlet: have you seen your irms ande other f general response that with? way?at's way? -- that >> absolutely. if you are going into the game and losing half of your talent, that is a pretty poor return in investment as a business model. law firms are very cognizant of these statistics and many, including my from have an issue have ways to make
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sure women are getting the proper opportunities and attention from the partnership in order to get them into the right place for partnership. scarlet: i think it will partner, what do you think tends to work better? is it better to ignore and reflect attention from your gender or double down and leverage it? good question. i don't think it is impossible to ignore the fact that i am a woman or that my colleagues are women or men. i think 25 years ago when i started in the business, there was a very masculine approach to addressing -- to dressing. there were uniforms, women did not wear bright colors. you're more reluctant to talk about your family and your personal life. hasink the business climate changed generally and law firms have changed in that respect, as well. i think there is a lot more acceptance of women in law firms in the workplace. scarlet: do you recall your clients and for requesting or
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demanding a diverse team of lawyers, saying we want women on our team, people of color, different people? doreen: absolutely. they will frequently request work with statistics as part of the packets. it used to just be a numbers game. now the clients really want to see who is going to be working on their matters. women andles, whether minorities have opportunities for advancement. for the billing partner is, who is getting credit for the relationsh. it has become a lot more nuanced on the client part. can you give me an example of how women in general think about compensation and governments in a different way than men? there is a diversity of opinion and thought and approach. doreen: in terms of negotiation style, women are much less likely to ask for additional compensation and much more likely to sign on to a term
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sheet or an offer as made rather than to negotiate for additional salary, additional options additional ever and great part and myying my practice interest in diversity has been to help women understand. that was my conversation with the partner at shirley and sterling. coming up, the former cia director says the dreamers serve as the u.s.'s first line of defense. we'll hear from him on a new coalition with corporate leaders. from new york, this is bloomberg. ♪ is this a phone?
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see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. >> on julia chesley. scarlet: and i'm scarlet fu. welcome to bloomberg markets.
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julia: live at bloomberg world headquarters in new york. here the top stories we're covering. business and political leaders joining forces to protect dreamers. and the white house chief of staff joins us to talk about the launch of the dream coalition. netflix reports results, and a test of its subscriber rates. of u.s. banks are gearing up to report results tomorrow morning. goldmanldman sachs stumble on trading? julie: we can just record me and
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play that every day. we are at another record. that has been the case and continues to be the case. jockeying for leadership. it has been changing depending on the date. today it is the financials. janet yellen spoke over the weekend. her comments were interpreted as hawkish. the 10 year yield up three basis points. moree still going to get financial earnings. jpmorgan and bank of america among the best performers. in the losing category, health care. we had intuitive surgical down after the robotic surgical system approved of a smaller competitor.
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bristol-myers squibb trading lower after jefferies downgraded it from a hold to a by saying there is downside risk if a lung cancer drug should fail. and the company is to use an indian tribe attacked its restasis drug from a patent review board fell apart. a judge said the patents do not cover a new invention. shares are down 4%. take a look. we have a more clear look at that. these are some of the groups year today. on the top, information technology which has had a rocky ride. health care in the meantime has .one sideways you have the financials rising after bottoming out.
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and energy stocks. we see this rotation going on. weak,other group that is coal is the exception. controlling family of nordstrom is suspending efforts to take the company private. macy's is lower as well. theaters -- sears is lower as well after the second largest shareholder said he is stepping down from the board. he still holds 25% of the company shares. scarlet: thank you. leon panetta once congress to permanently protect the so-called dreamers. he wrote our nation's first line of defense is our people. he is part of a new group called the dream coalition, including
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the chicago mayor rahm emanuel. now.panetta joins us thank you for your time. touming democrats vote protect dreamers, which champ -- chamber opposes a bigger threat? panetta: i think there is bipartisan support for fixing this program, being able to provide protections promised to 800,000 children of immigrants. strong there is a coalition in the house and the senate in support of the dream act. lindsey graham and others on the senate side have supported the dream act to protect these individuals. we have a good chance on both sides with corporation of the
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president and the administration. i think we are going to be evil to get this done by the end of the year. understand the broader issues. do you think dreamers should be dealt with as part of a broader package or they should be dealt with separately? mr. panetta: it would be nice if they were dealt with separately because they were promised protection. i understand washington. obviously, if part of this has to involve enforcement strengthening along the border then that ought to be something that could be part of a package. let's be frank. what we are looking at is a continuing resolution. sometime in december. that is going to be a broad package.
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i think there are going to be a lot of pieces to that, one of which i hope is the dream act. there may be funding for the enforcement side as well. i think we canat get bipartisan support for the ability to protect these kids. scarlet: something else that needs a support is iran. president trump would not recertify the iran deal tied to how sick he is of being taken advantage of as a nation. what could be improved upon in the current deal? what are areas that should be tossed aside and redone? >> there is no question that there are concerns about iran's terrorism.ort for concerns about what they do to promote instability in the region. at the same time we have
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established an agreement that does prevent them from getting a nuclear weapon in the short term. that is something that ought to be protected. how do we engage in negotiations with iran to deal with these other concerns? the better approach is to continue to enforce the nuclear agreement, work with our allies to work with us on that agreement to have them get iran to begin negotiations on these other issues. i don't think there is a way to simply tear up the agreement and hope iran is going to negotiate when they have every reason to question our credibility. i think it is better to protect our word and then engage in negotiations. julia: do you think that is the decision congress will make? again, this
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congress doesn't have a good record at getting much done whether it is on health care or other issues. this is not going to be easy. normally it is the commander in chief who dictates what should happen with foreign policy. to throw that at the congress raises questions. i hope they are able to do something. what they are working on is some kind of effort to strengthen enforcement on the deal. that might make sense along with applying sanctions if iran that't abide by the terms that is not going to be easy in a very divided congress. my hope is if they are not able to do anything that we don't tear up this agreement. i wanted to get your take on the personnel in the trump administration. tom cotton may be the next cia director.
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that he is being considered. what you know about the capabilities of the senator from alabama? not that familiar with his background. i know he has had interest in the intelligence arena. i would hope that what we need of thestability in terms members of this administration. to keep turning the pot and having people come and go, particularly with the national security team is not a good approach. we have serious problems in the world. the president does have a pretty good national security team. he ought to stick with them. julia: we have seen rex tillerson will make one comment and the president will undermine
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him or make a different comment. what do you think u.s. allies think when they see this routine between the president and rex tillerson? what do you think countries like iran and north korea think when they are watching it? mr. panetta: they are confused. whatare not quite sure exactly the strategy of the united states is. one of the concerns with the approach here is he doesn't mind blowing things up and creating disruption. is it tied to a strategy? that will promote national security goals? i don't see that strategy. the rest of the world feels the same way. when the national security team says one thing and the president says something else it creates is theinty about what
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united states stand for? i would hope one of the things the president ought to do is have one message, have them it represents exactly what united states stands for. that is something the world would appreciate. julia: do you think rex tillerson being removed would make that more consistent? i am not so sure. the bigger problem lies with the president, not the secretary of state. the issue was whether the president is going to back up his national security team, and all of them can agree as to what the policy of the united states is with regards to iran, north korea, russia, china, ciber. there are so many issues that require united states having a consistent policy.
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the most important thing is not an issue of personnel. it is an issue of whether or not there can be in agreement on what is the fundamental strategy for the united states dealing with danger points in the world? julia: thank you for joining us. leon panetta there. scarlet: if you had to articulate a strategy it was unwinding whatever obama did. julia: besides having a broader plan in place. coming up, morgan stanley and goldman sachs, will be escape trading? i will give you one guess. a preview, next. this is bloomberg.
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him scarlet: this is bloomberg markets. julia: it is time for the bloomberg business flash. nordstrom are lowering today. difficulty in obtaining debt financing. they plan to try again after the holidays. is ast learned john taylor candidate for the federal reserve chairman is said to have made an impression on donald trump after the two had interview at the white house last week. meanwhile, kevin is seeing his star fade as his choice.
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janet yellen is also in the running. x sold inl s and china will have charging cords that comply with local standards according to a company spokeswoman who says the company will begin retrofitting stations across the country. it will be completed by next spring. elon musk is trying to boost sales in the world's biggest electrical market. >> goldman sachs and morgan stanley report tomorrow. the latter three posted third-quarter declines amid slower consumer lending. you have next income trading under the microscope. joins us now. when it comes to trading goldman
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is more qualified. it was consumer lending. they looked better because they don't have that as much. used all trading in line with down on the income side. equities were better than that. you had investment banking doing better than expected. morgan,ce, goldman and this will not be the best quarter for them but if they can do better than expected they might get benefit from that. a bad performance is priced in at this point. >> they are always vague on the outlook. they said it was pretty challenging. follow tend to not commercial banks giving specific forecast.
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they have never attended to do that. analysts are guessing a little more where as city and jpmorgan said here is where we are tracking. expectations are pretty low for goldman. they are expected to be down 30%, the worst among the five. but they did have a good quarter. about they are worried credit quality. goldman sachs, they were talking about building out consumer lending. ?n terms of timing scarlett: it could be better. >> what you have seen historically, goldman and morgan stanley have focused on that. goldman has gone into the online lending business with the markets platform. they want that to grow
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aggressively and the even acknowledged, we have realized it is late in the credit cycle but we think there are opportunities to grow this business and not have it blowup on us. julia: fascinating. giantis not going to be in terms of the balance sheet but that is significant growth. scarlett: a lot of it depends on the credit cycle. one thing is cost-cutting. in particular their compensation . that is going to determine their profitability. how aggressively will be hold the line on bonuses? that tends to set the trend for the industry. >> it does. you have seen a change bringing those numbers down. that is their biggest expense where they can move the lever. the other expenses take longer
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to come through. it takes a couple of years. -- it will how depend how good their trading was. certainly with some of the hedge funds out there not doing as well as five years ago, the bid for talent is not as strong as it was. scarlett: and they will be running off. julia: looking for prime options trades? how to trade amazon. from new york, this is bloomberg. ♪
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julia: this is bloomberg markets. scarlett: it is time for julie hyman. today, jim, weme have been talking with you and the other options folks about earnings related trades. you are looking at amazon. you have been looking at some patterns in what happens with amazon after earnings. what does happen? >> this is broadly across the internet. a lot of of these companies, amazon, facebook, netflix, as they have gotten larger the earnings related volatility declines. we wanted to quantify that. markett week the options is implying a 4% move for amazon. ,t has moved less than that
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more like a bank. scarlett: you are betting it might move less than that again. >> these are less about trading vehicles than larder cad -- larger catalysts. that is the point. 2016, one month implied volatility, 50% right before earnings. now they are 30%. it really just makes that point. these are less about earnings related catalysts. >> what do you do to put that into motion? >> to frame it fundamentally, we expect a solid quarter from amazon. we are constructive longer-term. the target is 27% higher. around $1000. you can take advantage of term structure, the relationship
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between near dated and longer dated volatility. -- isainty is an ominous synonymous with that. right now if you go out to just after earnings and compared to january they are 12 volatility points of difference between the two and that is something we can take advantage of an structure a trade around. >> people think there is higher volatility priced into next week. what does the trade look like? >> it is a call calendar. at 10:40 expiration called. for $10.at package you were chopping in half the cost of the january call. you can play directional upside exploiting this differential.
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what you want to have happen is the stock moves up post earnings, remains below that strike, the day after the report earnings. you are left holding a cheaper january 1080 option to play the upside. the stock has not really moved since may. earnings could be a nice longer-term catalyst. scarlett: thank you. back to you. and monthly netflix subscription will cost 10% more but will it cost investors? we will be discussing. this is bloomberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered.
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comcast business outmaneuver. mark: time for first word news. mitch mcconnell says he and president trump have the same agenda after a working lunch at the white house. they spoke to reporters in the
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rose garden. mcconnell and the president pushed back at the notion they are at odds. >> we are probably now despite what we read, i think as far as i'm concerned closer than ever before. the relationship is good. we are fighting for the same thing. seizedraqi forces have an area in the battle against kurdish five soon -- fighters. it follows three weeks of rising tension since they voted in favor of statehood. ireland is being battered by the remnants of hurricane ophelia. some of the worst weather to hit the area and a half century. the irish weather service extended its most severe warning for the first time ever. a dangerous storm surge are

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